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Forex - Euro lower vs. dollar before Fed minutes

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Investing.com - The euro was lower against the dollar on Wednesday, moving back from six-month highs, as markets awaited the release of minutes from the Federal Reserve's latest policy meeting later in the session.

EUR/USD hit 1.3374 during U.S. morning trade, the session low; the pair subsequently consolidated at 1.3381, shedding 0.27%.

The pair was likely to find support at 1.3322, Tuesday's low and resistance at 1.3451, Tuesday's high and a six-month high.

Investors were awaiting the release of the minutes from the Fed's July meeting later Wednesday for further indications as to when the central bank may start to unwind its USD85 billion-a-month asset purchase program.

Market sentiment has been hit by mounting expectations that the Fed may start to phase out stimulus measures, known as quantitative easing, as soon as next month.

Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.

The pair showed little reaction after a report by the National Association of Realtors said U.S. existing home sales rose to the highest level in three years in July.

Existing home sales jumped 6.5% to a seasonally adjusted 5.39 million annual unit rate in July from June's revised total of 5.06 million. Analysts had expected U.S. existing home sales to rise 1.6% to a 5.15 million annual unit rate.

The single currency was lower against the pound, with EUR/GBP sliding 0.34% to 0.8534 and was higher against the yen, with EUR/JPY climbing 0.15% to 130.69.

Sterling found support after a report by the Confederation of British Industry showed that its industrial orders index rose to a two year high in August, boosting the outlook for the economic recovery.

A report earlier showed that the U.K.'s public sector posted a deficit of GBP1.6 billion in July. It was the first deficit for the month of July, which usually shows a surplus due to tax payments, since 2010.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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